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Corruption, Investment and Economic Growth in Developing Countries: A Panel Smooth Transition Regression Approach

Journal: SocioEconomic Challenges (SEC) (Vol.2, No. 1)

Publication Date:

Authors : ;

Page : 63-68

Keywords : growth; investment; corruption; panel smooth threshold regression;

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Abstract

This article analyzes for a sample of 110 countries between 2006-2016, the relationship between cor-ruption, investment and growth. Using the Panel Smooth Transition Regression (PSTR), results show that there is a non-linearity between growth and investment which depends on the level of corruption, characterized by a smooth transition between the two extreme regimes. More precisely, the results ob-tained suggest that the sensitivity of growth to investment is higher in countries with a low degree of corruption. By elsewhere we also find a positive direct impact of the corruption on growth.

Last modified: 2018-04-12 21:01:36